COMPANY PROFILE -H.E. Butt Grocery Company
Business Sector :Retail, Food Retail Chain
Operating Geography :United States, North America, Global
About H.E. Butt Grocery Company :
H.E. Butt Grocery Company is a privately owned supermarket chain that is headquartered in San Antonio, Texas, United States. It was founded in 1905. It currently owns more than 340 stores mostly in Texas and employs more than 100,000 people. In 1940 the company opened its first air-conditioned store and began stocking frozen food. It then went on to open its first supermarket ten years later which consolidated a fish market, butcher shop, bakery and pharmacy. The year 1976 was very significant for the company because it opened up the H-E-B Milk store, which became the largest milk plant in the state. In the same year, the company also started operating the largest bakery in the state. In 1997, the company expanded its business and opened a store in Mexico. In 2004, the company opened an H-E-B Plus! Store, which provided its customers with an expanded range of goods and services like music, DVDs, dedicated grilling supplies section, lawn and garden equipment, electronics as well as household items. In July 2022, H-E-B unveiled two new product lines that will add comfort and style to homes across Texas. The Haven + Key and Texas Proud home décor collections have started to appear in H-E-B stores all over the state as a part of the retailer's new Home by H-E-B division.
The USP of H.E. Butt Grocery is that it ranked 5 on the Forbes "America's largest Companies”. The mission statement of H.E. Butt Grocery reads, “Because People Matter. We're in the people business. We just happen to sell groceries.”
H.E. Butt Grocery Company Revenue :
$34 billion – FY ending 31st March 2021 (y-o-y growth of 5%)
$32.8 billion – FY ending 31st March 2020
Competitive Analysis of H.E. Butt Grocery Company
The SWOT analysis for H.E. Butt Grocery is presented below in a matrix followed by the detailed analysis report:
| Strengths | Weaknesses |
1. Presence of multi-format stores
2. Use of technology to streamline operations
3. Continuous improvement in customer shopping experience
4. Strong green policies to reduce environmental impact due to operations
5. Strong policies directed towards betterment of employees
| 1. No plans to expand to other areas |
| Opportunities | Threats |
1. Expansion into untapped areas within Texas
2. Expansion of delivery services to a wider audience
3. Building on the retail revolution by expanding the digital capabilities
4. H-E-B Plus! – One stop solution for consumers
5. Leveraging the opportunity in response to the COVID-19 pandemic
| 1. Intense rivalry with Walmart which is one of the world’s largest retailers |
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Detailed SWOT Analysis of H.E. Butt Grocery Company
Strength
1. Presence of multi-format stores: When the company started, it was a small store located in the Butt family home at Kerrville. However, the company later expanded by opening multiple stores. In 1940, the first air-conditioned store opened and it had the provision of stocking frozen food as well. The company then went on to open a supermarket in the 1950s by merging a butcher shop, fish market, bakery and pharmacy under one roof. Since then, the company has gone on to open stores of different formats. The company now does business in five different retail formats: general H-E-B stores, Central Market, H-E-B Plus!, Mi Tienda and Joe V's Smart Shop. The Central Market format offers an international food section along with organic food section. It also includes extensive beer and wine selections. H-E-B Plus! format is the latest addition and it expands the reach into non-food categories like entertainment. It also offers other departments such as a DIY section and a gardening section. Such formats help cater the different sections of people which helps pull more customers thus generating better profits.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
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Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for H.E. Butt Grocery is presented below in a table followed by the detailed analysis report:
| Political | Economical |
| 1. Active involvement in politics for a social cause | 1. Impact of corona virus pandemic on the operations
2. Grocery retail expected to be flat to declining industry for the next 30 years
|
| Social | Technological |
1. Innovation in disposing unused medications
2. Expanding delivery areas due to COVID restrictions
| 1. Upgradation of digital capabilities to improve operations
2. Use of automated solutions to support operations
|
| Legal | Environmental |
| 1. Stronger regulations by the U.S. Consumer Product Safety Commission | 1. Move towards sustainable procurement of sea-food
2. Initiatives towards reduction in environmental impact due to its operations
|
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Detailed Pestle Analysis of H.E. Butt Grocery Company
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
1. Stronger regulations by the U.S. Consumer Product Safety Commission: The U.S. Consumer Product Safety Commission (CPSC) is an independent federal regulatory agency that was created to promote the safety of consumer products. It addresses the risks of injury from these products by evaluating products that have been the subject of consumer complaints. If found unsafe, the products have to be recalled by the manufacturers and the CPSC helps coordinate these recalls. There is an increasing trend of stronger regulations by the CPSC due to higher imports, globalized supply chains and increase in Internet sales. H-E-B had to recall multiple products over last year due to these increased regulations by the CPSC. In March 2019, the Sauté Pan was recalled due to laceration hazard after CPSC directions due to complains of the glass lid shattering reported by eight customers. In September 2020, a type of sports chair was recalled by the manufacturer due to fall and injury hazard. These chairs were sold exclusively through H-E-B stores. Such news of recalls brings a negative reputation for the companies.
Environmental
This section is available only in the 'Complete Report' on purchase.
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TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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| H.E. Butt Grocery Company Covid-19 Impact Analysis |
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| H.E. Butt Grocery Company BCG Analysis |
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| H.E. Butt Grocery Company Segmentation, Targeting and Positioning (STP) Analysis |
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| H.E. Butt Grocery Company Ansoff Matrix Analysis |
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Check Out Analysis of Other Relevant Companies
References used in H.E. Butt Grocery Company SWOT & PESTLE Analysis Report
1. H.E. BUTT GROCERY - https://www.supermarketnews.com/archive/he-butt-grocery
2. Eyes on the Enterprise - https://digital.heb.com/the-feed/article/eyes-on-the-enterprise/
3. H-E-B and STRATACACHE Announce Expansion of Innovation Partnership - https://www.prnewswire.com/in/news-releases/h-e-b-and-stratacache-announce-expansion-of-innovation-partnership-863832671.html
4. H-E-B Pledges Largest Pay Increase in Company History - https://www.winsightgrocerybusiness.com/retailers/h-e-b-pledges-largest-pay-increase-company-history
5. H-E-B Forever - https://www.eater.com/2018/12/11/18133776/heb-texas-origin-cult-following
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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